IRS Digital Dispatch

Sept. 24, 2004

In this Issue:

1. IRS Grants Tax Relief for Hurricane Ivan Victims

2. Schedule C-EZ Change Means Savings for Small Businesses

3. Recent Technical Guidance

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1. IRS Grants Tax Relief for Hurricane Ivan Victims

The Internal Revenue Service has announced special tax relief for
taxpayers in the Presidential Disaster Areas of four Gulf Coast states
struck by Hurricane Ivan � Alabama, Florida, Louisiana and Mississippi.
These taxpayers generally will have until Dec. 30 to file tax returns and
submit tax payments. The IRS will abate interest and any late filing or
late payment penalties that would apply. This relief includes the Sept.
15th due date for estimated taxes and for calendar-year corporate returns
with automatic extensions. See:
http://www.irs.gov/newsroom/article/0,,id=129533,00.html

2. Schedule C-EZ Change Means Savings for Small Businesses 
  
The Internal Revenue Service will expand the number of small businesses
eligible to file a simplified expense form for Tax Year 2005 returns filed
in 2006.

The IRS will double the business expense threshold to $5,000 from $2,500
for filing the Form 1040, Schedule C-EZ. The change will mean a savings of
5 million hours of paperwork burden for small business taxpayers.
Approximately 500,000 more small businesses � a 15 percent increase � will
be able to file the Schedule C-EZ. See:
http://www.irs.gov/newsroom/article/0,,id=129561,00.html
 
3. Recent Technical Guidance:

Notice 2004-64, regarding recent amendments to IRC 501(c)(15), advises
taxpayers that the IRS will continue to scrutinize the eligibility of
certain property and casualty insurance companies for tax-exempt status.
See: http://www.irs.gov/pub/irs-drop/n-04-64.pdf
 
Notice 2004-65 removes transactions described in Notice 2002-70 from the
list of listed transactions.  The IRS will continue to scrutinize such
transactions when used to shift income to related companies purporting to
be insurance companies. See: http://www.irs.gov/pub/irs-drop/n-04-65.pdf
 
Notice 2004-67 provides an updated list of listed transactions. See:
http://www.irs.gov/pub/irs-drop/n-04-67.pdf

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